A.
Dear Client,
In India, the Government has yet to introduce any labour laws or guidelines around remote working. In the absence of any formal contract or offer letter, no relationship exists between a company and its intern, and accordingly, the question of serving a notice period post-resignation does not arise at all. Regardless of the class of employee either contractual or permanent, a trainee or probationer/intern in the course of probation or internship is not treated as an employee in the permanent role of the Company, so standing rules or regulations do not apply to the trainee/probationer unless it is specifically mentioned in the offer letter specifying that even on resignation during the probation, an employee has to serve a notice period or pay in lieu of notice period. As per the mandate of Section 27 of the Indian Contract Act,1872, any terms and conditions of an agreement that directly or indirectly compel the employee to serve the employer or restrict them from joining a competitor or other employer are not valid. The employee has the right to resign from employment even if he has agreed to the employment bond to serve the employer for a specific period. If the employer can prove that the employee is joining the competitor to disclose the trade secret, then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Act makes provision for unliquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract), and no compensation is attracted for mere breach of contract u/s.73 and Section 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, in the prevailing situation, on receipt of a threat notice threatening legal action, you can lodge a complaint against the company for blackmailing and criminal intimidation with whatever documents you have, at the local police station under Sections 308 and 351(1) of the Bharatiya Nyaya Sanhita(BNS) and serving a strong legal notice to them attaching the police complaint, you can approach the concerned Labour Commissioner or the Chief Inspector, Shops and Establishments, at the case may be, seeking their intervention in to the unfair labour practice tp resolve or fix the matter. If required, consult or hire an Advocate to navigate the issue in the right way.
Posted On 13-May-2025
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